Aurcana Launches La Negra Production

Vancouver — Production has begun at Aurcana’s (AUN-V, AUNFF-O) 80%-owned La Negra silver-copper-zinc-lead mine in Queretaro state, Mexico, following completion of a mill refurbishment and expansion phase.

With a planned throughput of 1,000 tonnes per day, the mill will start processing about 50,000 tonnes of material stockpiled over the past several months along with regular daily ore output.

Lower-grade ore will initially be fed through the circuit to test and fine-tune recoveries. Aurcana expects to start selling and shipping concentrates by the end of April.

The La Negra underground mine began production in 1970, operated by Industrias Peoles (IPOAF-O, PENOLES-M), until it was put on care and maintenance in 2000 due to weak metal prices. In its 30 years of operation about 6.6 million tonnes of ore was mined, producing 36 million oz. silver, 323 million lbs. (146,500 tonnes) zinc, 70 million lbs. (31,750 tonnes) copper and 161 million lbs. (73,000 tonnes) lead.

Historic reserves of 1.22 million tonnes grading 161 grams silver per tonne, 2.8% zinc, 0.94% copper and 0.88% lead were tabled by the previous operator. Aurcana initiated an audit on the historic reserves to bring them up to National Instrument (NI) 43-101 standards in late 2006.

La Negra is a skarn-hosted polymetallic deposit with 23 known orebodies identified.

Aurcana, along with partner company Reyna Mining and Engineering, purchased La Negra in mid-2006 from Peoles for US$3 million in cash and shares. Reyna, a private Mexican company, has 20% ownership in the mine.

In addition to La Negra, Aurcana recently entered into an option to acquire the Rosario silver-lead-zinc-gold project from Grupo Mexico (GMBXF-O, GMEXICOB-M) for US$3 million.

Situated in the southeastern portion of Mexico’s Sinaloa state, the property has two main areas of mineralization: San Juan and Rosario.

At San Juan, Grupo Mexico calculated historic reserves of 256,756 tonnes grading 329.3 grams silver, 3.73% zinc and 1.69% lead. A shallow decline was also driven to test the mineralized zone that is reported open at depth.

Historic reserve estimates conducted by Grupo Mexico on the Rosario area in 2000 (not NI-43-101 compliant) showed proven reserves of 37,944 tonnes at 122 grams silver, 3.82% zinc, 2.57% lead, and 0.98 gram gold per tonne and probable reserves of 277,074 tonnes grading 89 grams silver, 3.45% zinc, 2.36% lead and 1 gram gold. A further 323,738 tonnes of inferred resource was also tabled averaging 178 grams silver, 2.92% zinc, 2.07% lead and 1.1 grams gold.

Grupo Mexico reports past production (1986-2000) of 2.5 million tonnes of ore grading 190.5 grams silver, 2.02% zinc, 2.38% lead and 0.92 gram gold from the Rosario property.

Shares of Aurcana have recently rallied to new highs around $1.95.